Building construction is the process of adding structure to real property. The vast majority of building construction projects are small renovations, such as addition of a room, or renovation of a bathroom. Often, the owner of the property acts as laborer, paymaster, and design team for the entire project. However, all building construction projects include some elements in common - design, financial, and legal considerations. Many projects of varying sizes reach undesirable end results, such as structural collapse, cost overruns, and/or litigatios reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.

Building construction is procured privately or publicly utilizing various delivery methodologies, including hard bid, negotiated price, construction management-agency, construction management-at-risk, design-build and design-build bridging.

The major delivery methodologies have the following characteristics:

General Contracting

In the general contracting delivery method, the architect and the builder both contract with the owner/developer. The builder can be hired before the architect is hired or after the design criteria have been set forth in working drawings and specifications. Typically all the trade contractors are under contract to the builder "general contractor".

Construction Management-Agency

Construction management-agency is typically used for management of large, complex projects, including projects involving multiple buildings, multiple project sites, multiple phases or multiple general contractors or architects. Contractually, the architect, builder and construction manager (agency) contract with the owner/developer and the construction manager (agency) provides day-to-day oversight of the builder (typically, a general contractor). The construction manager's services range from an extension of the owner's in-house staff to active management and construction. The construction manager (agency), is involved from the initial planning stage, and typically provides the necessary leadership to determine early costs and project scope. As the team leader, the construction manager works together with the owner and the architect(s) to direct discussions on user objectives, financial feasibility, site analysis and other critical criteria.

In the design phase of a project, the construction manager (agency) works to balance functional and aesthetic objectives, while best utilizing budgetary resources. In the construction phase, the construction manager (agency) is involved in estimating, scheduling and managing the actual construction progress, quality and budgets. Construction management (agency) services typically include: